NTPC files draft papers with SEBI: Targets to raise 
10,000 crore via IPO
The renewable energy division of NTPC, NTPC Green Energy, submitted preliminary documents to capital markets regulator SEBI on Wednesday in an effort to earn 
10,000 crore through an initial public offering (IPO).
10,000 crore through an initial public offering (IPO).
As per the draft red herring prospectus (DRHP), the share sale will comprise just of a new issuance of equity shares, without any offer-for-sale (OFS) element. The corporation intends to use the 7,500 crore profits to settle any outstanding debt owed by its subsidiary, NTPC Renewable Energy Ltd (NREL), in full or in part. The remainder of the money will be used for basic business needs.
7,500 crore profits to settle any outstanding debt owed by its subsidiary, NTPC Renewable Energy Ltd (NREL), in full or in part. The remainder of the money will be used for basic business needs.
The issue's book-running lead managers are IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management. With an estimated issue size of 10,000 crore, NTPC Green Energy's initial public offering (IPO) will be the largest by a public sector business since Life Insurance Corp.'s 21,000 crore offering in May 2022. NTPC Green Energy, a central public sector organization known as "Maharatna," possesses a portfolio of renewable energy assets spanning over six states, comprising solar and wind generating assets.
10,000 crore, NTPC Green Energy's initial public offering (IPO) will be the largest by a public sector business since Life Insurance Corp.'s 21,000 crore offering in May 2022. NTPC Green Energy, a central public sector organization known as "Maharatna," possesses a portfolio of renewable energy assets spanning over six states, comprising solar and wind generating assets.
The company's operating capacity, as of August 2024, was 3,071 MW from solar plants and 100 MW from wind projects. By 2032, the NTPC Group wants to have 60 GW of renewable energy capacity. Its installed capacity is now 3.5 GW, and it has over 28 GW in development. Through NTPC Green Energy's listing, NTPC management hopes to unleash a sizable amount of value, sources told CNBC-TV18 in a previous article.
The CEO of NTPC Green Energy, Mohit Bhargava, stated earlier this year in an interview with CNBC-TV18 that the company's substantial need for equity is the main justification for thinking about an IPO.
According to a PTI article, India's installed renewable energy capacity increased from 63 GW in FY12 to 123 GW in FY21, and it is expected to reach roughly 191 GW by March 2024 (including large hydro). It further stated that by March 2024, solar energy would account for roughly 43% of India's total capacity for power generation.
